Jiutian Chemical posts record H1 earnings of 160.3m yuan

JIUTIAN Chemical Group clocked a record half-yearly net profit of 160.3 million yuan (S$33.6 million), up from the 35.4 million yuan posted for the year-ago period.

Group revenue rose 86.5 per cent year on year to 887.2 million yuan for the six months ended June 30, up from 475.7 million yuan.

In a bourse filing on Wednesday, the group's chairman Han Lianguo attributed the growth to strong demand for its main products, dimethylformamide (DMF) and methylamine, over the reported period amid China's post-pandemic economic recovery.

Downstream users of these products include high-growth sectors producing electric-vehicle batteries, electronics, pharmaceutical products and animal feeds.

The average selling prices of DMF and methylamine for the period were 9,987 yuan per tonne and 8,844 yuan per tonne, respectively - 117 per cent and 28 per cent higher than their prices in H1 FY20.

The sales volumes of DMF and methylamine for the period were 24 per cent and 19 per cent higher than in the year-ago period. The group expects sales for the second half of FY21 to be affected by severe flooding that hit China's Henan province in July and temporary closure of its production plants for annual maintenance.

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The group plans to expand its production capacity with a 100,000-tonne methylamine plant, pending approval from the relevant authorities.

Shares of Jiutian Chemical closed at 9.3 Singapore cents on Wednesday, down 2.1 per cent or 0.2 cent.